Buda from MFPR hopes that the new legislative process regarding the OFE Act will start in May 5
A "slight modification" of the draft act amending certain acts in connection with the planned transfer of funds from open pension funds (OFE) to individual pension accounts (IKE) is possible, and the legislative process may start again in May, said Deputy Minister of Funds and Regional Policy Waldemar Buda.
"We want to return to this law, perhaps to slightly modify it. We are certainly not giving up on it. [...] I hope that we will start this legislative process again in May" - said Buda on TOK FM radio.
The bill to date was already at the stage of parliamentary work after the second reading. He was also on the voting schedule for April 20, but was removed from it on voting day. According to this draft, the act was to enter into force on June 1, 2021. The time for submitting a declaration on the transfer of funds from OFE to ZUS was set from June 1, 2021 to August 2, 2021. OFE was to be transformed into specialist open-end investment funds. January 2022
"The choice is a two-month law, we have to design in the coming months. It will definitely not be June - August, as originally planned. It will be slightly later - a month or two" - emphasized Buda.
He also announced that it was necessary to carry out the entire legislative process from the beginning.
"You have to carry out the first and second reading, because we stopped at the second reading, and the end of the second reading closes the right to introduce amendments, unless the legislative office of the Sejm suggests a different way" - he explained.
"At the moment, we cannot amend this right of choice, which is provided for in the Act on June 1. Therefore, we will certainly not make it on time with the legislative process, so in my opinion there is only one way to a new act, two readings, "he added.
When asked about his support for the project, he said: "everyone concerned is convinced that we should continue this process."
Yesterday "Dziennik Gazeta Prawna" announced that it is currently considering the adoption of the bill by the Council of Ministers. In the opinion of the newspaper, the parliamentary work on this draft could commence at the meeting scheduled for June 23-24.
According to the current draft, each insured will have the right to choose - the default option will be to transfer funds from OFE to IKE, with the possibility of its further voluntary supply. A one-off transformation fee for the Social Insurance Fund is to be collected from the OFE funds, in the total amount of 15% of the value of OFE assets. The fee is to be spread over 2 installments, both payable in 2022. The payer is to be specialized open-end investment funds established from the transformation of OFE.
In the event that an OFE member would exercise the right to submit a declaration on the transfer of his money to ZUS, then these funds would be fully credited to the insured person's account kept at ZUS, and the corresponding assets would go to the Demographic Reserve Fund. The withdrawal of funds from IKE would be possible after reaching retirement age and will be tax-free. Money accumulated in IKE can be inherited (such a possibility would not be possible in the case of funds accumulated in ZUS).
As part of IKE, funds from OFE are to be separated and may be withdrawn after reaching the retirement age. Moreover, to ensure the safety of these funds, two sub-funds would be separated in the funds maintaining IKE. In the period of 5 years before reaching the retirement age, the funds would be successively transferred to the sub-fund, which has a more cautious investment policy.
One of the main assumptions of the reform is to eliminate the so-called "slider", which currently reduces the savings of pensioners accumulated in OFE. 10 years before retirement, they are gradually transferred to ZUS.
Source: ISBnews and TOK FM radio
